Massive layoffs, studio closure announced by Telltale Games

Telltale Games is most popular for The Walking Dead, Minecraft, Batman and Game of Thrones

The company earlier announced that it would be scaling back operations

The developer is believed to have laid off hundreds of employees

CALIFORNIA, U.S. - In a news that rocked the gaming tech industry, Telltale Games - which is popular for working on immensely popular episodic adventure games announced that it had laid off all but 25 of its employees.

The company also announced that following a year marked by insurmountable challenges, it had decided to begin a majority studio closure.

The company, which is most popular for working on The Walking Dead, Minecraft, Batman and Game of Thrones, released a statement amid reports on the layoffs and closure.

Telltale said in its statement, Today Telltale Games made the difficult decision to begin a majority studio closure following a year marked by insurmountable challenges. A majority of the companys employees were dismissed earlier this morning, with a small group of 25 employees staying on to fulfill the companys obligations to its board and partners.

Separately, the CEO of Telltale Games, Pete Hawley issued a statement and said, "Its been an incredibly difficult year for Telltale as we worked to set the company on a new course. Unfortunately, we ran out of time to get there. We released some of our best content this year and received a tremendous amount of positive feedback, but ultimately, that did not translate to sales."

Hawley noted in the statement, "With a heavy heart, we watch our friends leave today to spread our storytelling across the games industry. Telltale will issue further comments regarding its product portfolio in the coming weeks."

According to reports, the company's remaining 25 employees are working on Minecraft Story Mode for Netflix.

This led to reports confirming that the Walking Dead staff at the company were part of the layoffs - which reports said meant that the soon-to-be-released second episode of the ragingly popular IP would be the final one.

Further, reports confirmed that the company's 'The Wolf Among Us' season 2 and the 'Stranger Things' game have been canceled.